Alphabet Achieves $4 Trillion Valuation

Alphabet reached a $4 trillion market valuation on Monday, 12th January 2026. This achievement results from a significant strategic realignment towards artificial intelligence, which has renewed investor confidence and positioned the company as a leader in the tech industry.

Alphabet Surpasses Apple in Market Capitalisation

Last week, Alphabet outperformed Apple in market capitalisation for the first time since 2019, securing its status as the world’s second most valuable corporation. This valuation increase is part of a larger recovery; shares surged approximately 65% in 2025, outperforming most of its “Magnificent Seven” competitors. The stock has moved up a further 6% since the beginning of 2024.

Investors Boosted by Gemini 3 Model Success

Investor sentiment has been positively influenced by the successful launch of the Gemini 3 model, which has garnered strong reviews and increased competitive pressure on rivals like OpenAI. In addition, Google Cloud has emerged as a key growth driver, with revenue in the third quarter spiking 34%, and a backlog of sales contracts reaching an impressive $155 billion. The unit’s expansion has been further propelled by the decision to lease Google’s proprietary AI chips to external clients.

Alphabet’s Expanding Commercial Reach

The company is broadening its commercial footprint through significant partnerships. Samsung Electronics is reportedly planning to double the number of mobile devices featuring Gemini-powered AI this year. Additionally, Apple has entered into a multi-year agreement to utilise Google’s framework for its next generation of AI models and a revamped Siri. Furthermore, discussions are ongoing with Meta Platforms, which is said to be considering spending billions on Alphabet’s chipsets for its data centres starting in 2027.

Core Advertising Business Remains Strong

In addition to its AI and cloud achievements, Alphabet’s core advertising business has proved resilient despite economic challenges. The company’s legal standing has also stabilised following a court ruling in September that allowed it to maintain control of both the Chrome browser and the Android operating system. After Nvidia, Microsoft, and Apple, Alphabet has become the fourth company to reach the $4 trillion milestone.